Journal Press India^®

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Purpose: The purpose of this study is to evaluate mortgage servicing from an economic perspective and further examine the challenges of these perspectives in managing mortgage servicing portfolio. Design/Methodology/Approach: The study is based on the secondary data which have been collected from different websites, journal, and magazines. Findings: The market value of a portfolio depends on aggressive marketing efforts that maximize competition to receive the highest bid. As the economic value varies from institution to institution, and even at the institutional level the economic value is expressed in terms of a range of possible economic scenarios rather than a single value. Therefore, it is extremely essential that the competitors in the mortgage servicing business understand thoroughly how to evaluate the economic value of components of their existing portfolios and of portions they are considering for purchase or sale. Research Limitations: Research is based entirely on the secondary data. Managerial Implications: To streamline and tailor operations to produce maximum economies of scale, portfolio managers need to adjust the mix of loan types being serviced. Originality/Value: comprehensive analysis of changing paradigms of mortgage servicing industry in the U.S. makes the paper original, and loaded with the values.

Keywords

Mortgage Backed Securities (MBS), Portfolio Management, Banking, SMMEA.